BILL ANALYSIS                                                                                                                                                                                                    






                        SENATE HEALTH AND HUMAN SERVICES
                               COMMITTEE ANALYSIS
                        Senator Deborah V. Ortiz, Chair


          BILL NO:       AB 2297                                      
          A
          AUTHOR:        Vargas                                       
          B
          AMENDED:       May 20, 2004
          HEARING DATE:  June 23, 2004                                
          2
          FISCAL:        Appropriations                               
          2
                                                                      
          9
          CONSULTANT:                                                 
          7
          Machi/Margolis/sl
                                        
                                     SUBJECT
                                         
                       Imported candy: lead contamination

                                     SUMMARY  

          Expands the Childhood Lead Poisoning Prevention Act of 1991  
          (Act) to require the Department of Health Services (DHS) to  
          regulate the lead content of imported candy.

                                     ABSTRACT  

          Existing law:
          1.Lists lead on California's Proposition 65 list which  
            includes all toxins that are known to the state to cause  
            reproductive harm.

          2.Prohibits under the Federal Sherman Food, Drug, and  
            Cosmetic Law, the sale of adulterated food, as defined.

          3.Requires DHS to establish a childhood lead poisoning  
            prevention program to identify and conduct medical  
            follow-up of high-risk children and to establish  
            procedures for environmental abatement.

          4.Requires DHS to assess a fee against persons who  
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            contributed to sources of lead contamination to fund the  
            activities of the state's childhood lead poisoning  
            prevention program.

          This bill:
          1.Requires the state to test imported candy to determine  
            its lead content.  Establishes a lead content standard of  
            zero, or lowest detection limit for imported candy.

          2.Requires DHS to have jurisdiction over the regulation of  
            ensuring imported candy is lead free and gives priority  
            for testing imported candy received by community-based  
            organizations.

          3.Authorizes DHS to make available funds deposited into the  
            Childhood Lead Poisoning Prevention Fund for purposes  
            described in this bill.

          4.Authorizes DHS to enter into contracts with county health  
            officers and county environmental officers to collect  
            samples of candy for testing.

          5.Requires DHS to establish an interagency collaborative  
            and defines the composition of the collaborative.

          6.States that "candy," for the purposes of this bill,  
            includes only candy imported from a foreign country and  
            its packaging or wrapper.

          7.Authorizes DHS to issue health related advisories, order  
            the removal of, and to embargo candy found to contain  
            lead.

                                  FISCAL IMPACT  

          According to Assembly Appropriations Committee, this bill  
          would have special fund costs of approximately $862,000 in  
          2004-05 and on-going annual cost of approximately $1.3  
          million. (Childhood Lead Poisoning Prevention Fund.)

          (The Governor's 2004-05 budget appropriates $25.3 million  
          from the Childhood Lead Poisoning Prevention Fund.  In  
          2004-05, the fund balance is $2.6 million, down from $7.6  
          million in 2003-04.  This bill increases pressure to either  
          increase the existing fees or to seek General Fund  
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          support.)

                            BACKGROUND AND DISCUSSION  

          Purpose of the bill
          According to the author, a sample testing of candy  
          (produced in Mexico and sold in Southern California) was  
          conducted by DHS.  These tests revealed that some of the  
          candy included in the sampling contained much more than the  
          U.S. Food and Drug Administration (FDA) maximum suggested  
          amount of lead deemed safe for consumption by a child in  
          one day.  In spite of this discovery, there was no public  
          health alert issued.  In March of 2004, DHS issued its  
          first state health alert since 2001 when a popular imported  
          candy, Chaca Chaca, tested well above the FDA  
          recommendations for any exposure of lead from all food  
          sources consumed on a daily basis.

          Current law does not require DHS, including the Childhood  
          Lead Poisoning Prevention Program, to test candy that may  
          be contaminated with lead.  The Food and Drug Branch is  
          authorized to test these candies, but only if the branch  
          collected the candy samples to be tested.  Current law does  
          not mandate the development of a community/interagency  
          collaborative to help collect and identify candy that may  
          be contaminated with lead.  Current law also does not  
          mandate that DHS issue public health advisories once a  
          candy has been tested and proven through testing to be  
          contaminated with lead.



          Lead poisoning
          Lead is a heavy metal that is toxic to the brain and  
          nervous system.  The body mistakes lead for calcium.  Lead  
          that is ingested is absorbed into the blood from the small  
          intestines.  Fifteen percent of ingested lead is absorbed  
          in the soft tissue, while 85 percent is absorbed in the  
          bones.  Lead in soft tissues can be flushed out by the body  
          within a month, but the lead that is absorbed into the  
          bones can take years to be removed from the body. 

          Lead is extremely toxic, especially to infants, children  
          and pregnant women.  In very small amounts lead can cause  
          damage to the liver, kidneys, lungs, brain, spleen,  
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          muscles, heart and central nervous system.  It stunts  
          growth and impairs behavioral development and intelligence  
          in children.  Significant exposure can lead to death.   
          Damage caused by lead can be irreversible.

          In the United States, lead was banned from house paint in  
          1978 and from gasoline in 1986.  As a result of preventive  
          and removal actions taken, the percentage of U.S. children  
          with elevated blood-lead levels have dropped dramatically,  
          from 88 percent in the 1970s to 2 percent in 2000.  FDA has  
          set the acceptable level of lead in candy as 0.5 parts per  
          million.  However, the FDA is currently reviewing that  
          level and is considering lowering it.  In 1991, the federal  
          Centers for Disease Control and Prevention (CDC) set the  
          level of concern for lead in children at 10 micrograms of  
          lead per deciliter of blood.  More recent data suggests  
          that this may be too high; recent studies report effects in  
          children at lead levels as low as 3 micrograms per  
          deciliter and possibly lower.

          Orange County Register Articles
          Over the last two years the Orange County Register  
          (Register) has conducted an investigation of lead in candy  
          being sold in Orange County. The Register reports that 90  
          percent of lead-poisoning cases in Orange County are Latino  
          children and 75 percent cases statewide are Latino  
          children.  The Register conducted tests on candy being sold  
          in California and found that many Mexican candies tested  
          positive for high levels of lead.  According to the  
          Register, 112 brands of candy, most coming from Mexico,  
          registered dangerous levels of lead over the past decade.   
          (In evaluating the candy the Register set a level of 0.2  
          parts per million (ppm) as high.  However, the FDA  
          currently allows lead levels up to 0.5 parts per million.)

          The Register looked at various ingredients and processes in  
          the manufacture of candy coming from Mexico and found that  
          one source of lead was the chilies used in many Mexican  
          candies. The soil, because Mexico did not discontinue the  
          use of leaded gasoline until the mid-1990s, contains lead.  
          The chilies take on the lead from the ground in which they  
          are grown.  When ground into chili pepper the lead is  
          ground in with the chilies.  However, the lead can be  
          virtually removed from the chilies if they are washed prior  
          to being ground into powder. According to the Register,  
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          some Mexican candy manufacturers use two different  
          processes in making their candy:  one for the Mexican  
          market and one for the U.S. market; washing chilies only  
          for candy being exported to the U.S.  However, some of the  
          candy made with unwashed chilies gets imported into the  
          U.S. illegally.

          Similarly, a popular Mexican candy made with tamarind fruit  
          is made in pots that are glazed with a material containing  
          lead.  The lead leaches from the pot into the candy.

          Candy containing levels higher than 0.5 ppm is prohibited  
          from sale in the United States.  However, candy testing  
          positive for high levels of lead is still coming into  
          California, most likely from illegal importation practices,  
          not through normal distribution processes.  The Register  
          asserts that the U.S. and California governments have known  
          for years of this problem but fail to act.

          In April, 2004, FDA put out a statement saying, "The Food  
          and Drug Administration (FDA) is aware of a problem  
          associated with lead contamination of some Mexican candy  
          products being sold in the United States and is advising  
          parents, care providers and other responsible individuals  
          that it would be prudent to not allow children to eat these  
          products at this time?  The FDA is taking action to reduce  
          the risk of potential exposure of children to lead from  
          these candy products.  FDA believes that contamination of  
          chili powder may be occurring at certain steps in the  
          manufacturing process.  FDA will be working with Mexican  
          government and industry personnel to resolve this problem."

          Senate hearing on lead in imported candy
          On June 3, 2004, the Senate Health and Human Services  
          Committee and the Senate Committee of Governmental  
          Oversight jointly conducted a hearing on the dangers  
          associated with lead in candy.  Dr. Richard Jackson, State  
          Public Health Officer within DHS testified that in 2003 of  
          the 450,000 children tested in California for elevated lead  
          level, 720 tested positive, which illustrates a significant  
          decrease over the last decade.  Dr. Jackson also stated in  
          the hearing, that paint and dust still present the highest  
          risk for lead poisoning in children.

          Several issues were raised that are relevant to this  
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          legislation:
          1.The articles published in the Orange County Register  
            assert that the Childhood Lead Poisoning Prevention  
            Branch of DHS has adopted a level of 0.2 ppm as the level  
            of concern for lead poisoning.  While that number is  
            being currently reviewed in studies and evaluated by the  
            FDA, the Childhood Lead Poisoning Prevention Branch uses  
            the FDA level of concern number of 0.5 ppm.

          2.The Childhood Lead Poisoning Prevention Branch currently  
            collects fees to administer their programs.  There is  
            question as to whether or not the fees currently  
            collected from the petroleum and paint industries could  
            be used to fund the activities required under this bill,  
            given the nature of the Sinclair Paint decision.

          3.In response to an increase in this year's fees, several  
            companies have not paid the required fees for this past  
            year and are petitioning the Board of Equalization for an  
            appeal on the fees.  The Committee is awaiting a response  
            from the Board of Equalization concerning the status of  
            the fees paid to date and the appeals currently pending.




          4.The Orange County Health Officer, Dr. Mark Horton,  
            testified that the local health departments use health  
            advisories to attempt to provide education and assistance  
            in their communities.  Dr. Horton stated that health  
            advisories are helpful to county health departments and  
            that the most recent advisory led to the removal of one  
            type of candy from store shelves.  

          5. Recognizing that there may be food sold in California  
            that exceeds the allowed levels of lead, committee  
            members queried DHS staff about food recall procedures.   
            DHS does not have recall authority in such cases and the  
            FDA has limited authority.   According to the FDA  
            website, The Federal Food, Drug, and Cosmetic Act, does  
            not generally authorize FDA to "order" a manufacturer to  
            recall a food, cosmetic or supplement.  The agency may  
            request a product recall if the firm is not willing to  
            remove dangerous products from the market without FDA's  
            written request.  Only when a medical device, human  
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            tissue products, and infant formula pose a risk to human  
            health, does the law specifically authorizes FDA to  
            prescribe a recall and to rule on the scope and extent of  
            the recall.

          Previous legislation
          AB 256 (Vargas, 2003), would have required DHS to maintain  
          a program to monitor lead levels in all candy imported from  
          outside the United States and distributed or sold in the  
          state. The provisions dealing with lead levels in imported  
          candy were amended out of the bill prior to the bill being  
          sent to the governor for signature.

          AB 455 (Chu, Chapter 679, Statutes of 2003) enacted the  
          Toxics in Packaging Prevention Act, which, beginning  
          January 1, 2006, prohibits the sale of any package, or  
          product in a package, that includes regulated lead,  
          mercury, cadmium, or hexavalent chromium, if such metals  
          have been intentionally introduced during manufacturing or  
          distribution.

          Arguments in support
          According to the Environmental Health Coalition (EHC), the  
          bill's sponsor, "Childhood lead exposure from candies is a  
          preventable problem and AB 2297 will provide clear  
          authority to the Department of Health Services to test, ban  
          and remove lead contaminated imported candies."

          Over the years, EHC states that it has investigated many  
          potential and known sources of lead exposure.  Concerned  
          about the potential for lead contamination in candy, in  
          2001, EHC's community promotoras collected candies from a  
          variety of local stores in San Diego and sent them to DHS  
          for testing.  EHC states that in July 2002, DHS released  
          test results showing two Mexican candies contained  
          excessive levels of lead.  Chaca Chaca was found in three  
          tests to contain three times the allowable lead levels and  
          another candy, Tablarindo, was found to contain more than  
          five times the allowable level of lead.  These candies were  
          not removed from store shelves.

          Supporters state, "The candies present an unacceptable  
          health risk to children, and should have been removed from  
          store shelves immediately.  But almost a year after the DHS  
          test results, many of these poisonous candies are still  
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          readily available to children in communities.  AB 2297 will  
          ensure that DHS is authorized to act quickly in the  
          future."

          Support if amended
          The Hershey Food Corporation has taken a support if amended  
          position and is requesting with Kraft Corporation and the  
          Grocery Manufacturers of America the following amendments:
          1.Limit the applicability of the bill to imported products  
            containing chili powder and/or tamarind fruit, and  
            importantly, the accompanying packaging. Hershey states  
            that reports have consistently cited products with these  
            ingredients as contributing most significantly to the  
            problem of lead-adulterated confectionery.  Hershey  
            argues that limiting the focus to these products will  
            maximize the focus and the resource of DHS and the  
            community partnerships created by the bill.  However,  
            these are the known sources of lead in candy products. It  
            may be beneficial to the state to maintain a broader  
            statute in order to capture the unknown sources.

          2.Adhere to the Food and Drug Administration's (FDA)  
            content guidelines for lead.  The proponents of these  
            amendments state that "a zero lead tolerance standard is  
            unattainable as lead is ubiquitous to the environment,  
            with trace amounts in most consumer products, including  
            food.  Lowest detectable limit is similarly unattainable  
            given the sophisticated and sensitive testing available.   
            Accordingly, adoption of this standard would render all  
            imported confectionery adulterated in California.  There  
            are very real international trade implications associated  
            with restricting/eliminating the sale of all imported  
            confectionery in the state." They argue that this  
            standard, which is currently under consideration for  
            revision, is based on science and has been recognized by  
            the international community.  Some experts believe that  
            the FDA's current standard is too high, and state that  
            the FDA is considering lowering it.  Given California's  
            international borders, the state might benefit from  
            setting its own standard.

          3.Require all manufacturers of imported candy containing  
            chili powder and/or tamarind fruit to annually test and  
            certify (using endorsed testing procedures) that each  
            individual product intended for sale in the state is in  
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            compliance with FDA guidelines for lead and CONEG (the  
            Council of Northeast Governors) Model Toxics in Packaging  
            standards for the accompanying packaging. .  The CONEG  
            model legislation was originally drafted in an effort to  
            reduce the amount of heavy metals in packaging and  
            packaging components that are sold or distributed  
            throughout the United States.  California has recently  
            enacted AB 455, while aimed at reducing the amount of  
            heavy metals in packaging in order to prevent them from  
            getting into the solid waste stream, may also capture the  
            purpose stated here.  Also, according to the Register's  
            investigation, the candy being sold in California with  
            the highest lead levels has come into the country  
            illegally.  Therefore, those candies that are likely to  
            be at issue are not likely to be captured by these  
            provisions.  Moreover, there may be significant sources  
            of lead other than chili or tamarind.

          4.Authorize DHS, in partnership with County Departments of  
            Health, to remove from the retail stream any product not  
            certified.

          5.Require DHS to periodically test certified products to  
            ensure compliance with FDA standards for lead and CONEG  
            Model Toxics in Packaging standards for packaging, and  
            require the removal of any products that do not comply.
          6.Require DHS develop a listing of all products that have  
            been certified and partner with County Health Departments  
            and community-based organizations in disseminating this  
            information to the public.

          Rather than creating a certification process and a program  
          within DHS to enforce certification it may be prudent to  
          give DHS the authority to recall or remove products from  
          California establishments upon making a finding that the  
          product may cause harm and does not meet state standards  
          for acceptable levels of lead.  

          Hershey Foods states, "We believe that these amendments  
          will enable the Department, in partnership with County  
          Departments of Health and community groups outlined in the  
          bill, to immediately identify non-compliant products,  
          quickly remove them from the retail stream, and focus  
          additional resources on community awareness and education."

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          The author has not yet indicated a willingness to accept  
          any of these amendments.

          Arguments in opposition
          Opponents state that since lead occurs naturally in the  
          environment and because ingredients used in producing candy  
          may contain lead at levels allowed by FDA, it is nearly  
          impossible for candy or any other food product to achieve a  
          zero or lowest detectable level of lead content.  The  
          opponents state that "while we certainly share the goal of  
          protecting our children from exposure to dangerous levels  
          of lead in imported candy, we believe the bill as currently  
          written would not be the most effective approach to  
          accomplishing this goal.  First, the natural occurrence of  
          lead in the environment prevents most food products  
          including confectionery from meeting the zero tolerance  
          level required in AB 2297."  Opposition also argues that  
          the administrative breadth of the bill would limit its  
          effectiveness and prevents quick enforcement, stating that  
          any candy product imported into California would be tested  
          - that is over 20,000 types of products. 

          Opponents believe that rather than initiating an  
          exceedingly broad independent state program for lead in  
          candy, it would be far more effective for California to  
          coordinate its efforts with those of the FDA, whose  
          expanded powers would provide far more resources to address  
          the problem than California could create at the state  
          level.
















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          The California Paint Council (CPC) is opposed to the bill  
          stating, "CPC has no position on the proposal for the  
          Department of Health to regulate the lead content in  
          imported candy, but the paint and petroleum industries  
          should not be required to pay for that new program."
                                     COMMENT
                                         
          In conversations with representatives from various U.S.  
          candy manufacturing companies, it was stated that in many  
          candies, from chocolate to "Jolly Ranchers," it would be  
          impossible to meet a zero level of lead.  Most candies as  
          well as other foods have at least a small amount of lead  
          from naturally-occurring uptake in cocoa, sugar beet or  
          other plants.  It was asserted that a zero level would  
          prohibit many foods from being sold in California.  The  
          Committee and author may wish to consider amending the bill  
          to set a standard to be the lowest level between the FDA  
                                                                               and .2 parts per million, at any given time.
                                  PRIOR ACTIONS

           Assembly Floor:          74 - 2   Pass
          Assembly Appropriations: 16 - 3   Do Pass as Amended
          Assembly Health:         11 - 3   Do Pass

                                    POSITIONS 

          Support:       Environmental Health Coalition (sponsor)
                         City of Chula Vista
                         Consumer Attorneys of California
                         Los Angeles Unified School District
                         Planning and Conservation League
                         Sierra Club California

          Oppose:   California Paint Council
                         California Manufacturers and Technology  
          Association
                         Grocery Manufacturers of America



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